Tag Archive : Colleen Marie & Associates

Funding a Living Trust

Many individuals struggle to finance their living trusts properly. Funding involves moving assets to the name in which your trust is, from your own name. Bonds, bonds, bank accounts, life insurance plans, real estate, mutual funds, deposit certificates, cars and more can be transferred.For more information, visit their website at Colleen Marie & Associates, Oceanside.

You have to ask your mutual fund company for the right form and change the name of the account owner if you would like, say, to move your mutual fund account to your living trust. The account used to say “owner – Mark and Freda Jones” for instance, but now it should say something like, “owner – Jones Family Trust, Mark and Freda Jones as Trustee”

However, it must be known that financing a trust can be uncomfortable. There are a number of forms to fill in and you will sometimes be charged a fee for changing the property title/ownership. If the asset is complicated, an attorney can draft the transfer papers, for example, a company, and attorneys are not inexpensive.

Using these properties after you have passed them on to the trust may also be more complicated. If you try to sign a grocery check that specifies that you’re paying out of your trust fund… All right, that’s going to confuse them! In this situation, it would be better to have a small personal checking account to take care of matters such as regular checks, grocery shopping, etc.

Also, it can be difficult to find a bank that will work with you if you want to take out a mortgage on a property that is kept in trust, however it can be done.

Some organizations are poorly suited to being in a living trust. If it were working as a trust, a real estate development company would find it difficult to negotiate with title businesses, lenders etc.

Personally owned out-of-state real estate, though, is a strong choice for a living trust as the estate will escape the property’s out-of-state probate.

Before putting assets in your living trust, you need to think about your personal circumstances. For real estate, it’s probably not a smart idea to place it in the trust if you intend to re-mortgage or sell the property quickly, but if you plan to hold on to it for life, it may be a good idea to put it in the living trust. Your lawyer will give you the best advice on what to put in the trust now what to put in it at a later date, and what to omit entirely.

Contact Info

Colleen Marie & Associates
1470 Powell Rd., Oceanside, California 92056
(858) 750-7350